RENT levels are expected to rise in the New Year

RENT levels are expected to rise in the New Year, as rental properties coming onto the market has fallen for the first time since January 2008, according to the latest Royal Institute of Chartered Surveyors (RICS) survey - Alison Steed

RENT levels are expected to rise in the New Year, as rental properties coming onto the market has fallen for the first time since January 2008, according to the latest Royal Institute of Chartered Surveyors (RICS) survey.

Improvements in the housing market have led to a fall in the number of rental properties coming to the market , and a fifth more surveyors expect rents to rise rather than fall in the next three months.

Demand for houses to rent is particularly strong, although generally rental activity has picked up, with 16 per cent more surveyors seeing a rise in interest in rental property.

Jeremy Leaf of the RICS, said: “It seems the current upward trend in the housing market is having a more significant effect on the lettings market, with many of the accidental landlords returning to the sales market to take advantage of the recent price increases. As a result the recent oversupply is reversing, with new instructions at the lowest levels we have seen. This of course is impacting on prices and tenants no longer have as strong a bargaining power as they did."

 

Alison Steed is editor and co-founder of MyMoneyDiva.